If you’re seriously thinking about starting an online home based business and you’re looking into different opportunities available on the web you should take a serious look at domain flipping as an endeavor. First of all for the uninitiated, domain flipping has several different definitions depending on which approach you want to take for your home business. According to Morgan Linton’s website there are three different techniques you can use to develop your domain opportunity.
For example, definition number one states: “Buy a domain name and immediately put it up for sale. These flips are easy because they require no work outside of purchasing the name. The downside is they oftentimes only represent sales in the $xx or $xxx category.”
Definition number two explains: “Buy a domain name and start a legitimate business that can then be sold with the name as a business. This involves actually building a business around each domain you purchase. If done right can certainly generate high sales as you are selling much more than a name. Can be time-consuming and expensive but those who are good at it make great money.” (Morgan Linton’s website)
And definition number three says: “Buy a domain; develop a custom website for the domain with actual content that visitors would find useful containing Google Adsense or similar advertising. List the website in all major search engines and sometimes use PPC advertising services to monetize the domain before it is sold.” (Morgan Linton online)
We’re going to concentrate on definition number one as a home business where you buy a domain name and list on the different auctions sites for immediate sale. How fast you sell the address is ultimately up to you. If the offers you receive aren’t within your expectations then you can hold it and hope that it’s perceived value increases over time.
There are several advantages of having a domain flipping home based business online over the more traditional enterprises on the web including:
1. There is a very low start up cost associated with domain flipping. You can start out by buying several URL’s very inexpensively from $7.00 to $10.00 and then make them available for sale through the different domain auction sites on the Internet. Your initial start up investment would be the cost of the three domains, your web hosting fee if you have a website you’re working from, which isn’t necessary, and the cost of your personal domain name.
2. Because of the low start up cost you are in a position to make a huge profit from each sale. If you purchase a single domain for $10.00 and sell it for $100.00 you’ve made ten times the value of your initial investment. This was a very conservative estimate for a selling price because some of these domains have sold for hundreds and sometimes thousands of dollars. This demonstrates the possibility exists to make a very comfortable living from flipping domains on the web.
3. There’s no inventory to maintain as there is with a traditional Internet business. There’s no stock to replace or any of the related costs involved and your only maintenance is a list of your domains which you have housed with one of the domain sites online such as Go Daddy or with your own website host if you have one.
4. There’s no shipping and handling of products involved with domain flipping as there is with most other home businesses on the web. Your customers can claim ownership of their domain immediately after purchase and you don’t have the cost and headaches involved with shipping and handling merchandise to deal with.
5. Customer service is very minimal because you don’t have to deal with disgruntled and unhappy customers after the sale and you don’t have to follow up to see if they’re satisfied with the performance of their merchandise. The only real contact with your clients is during the buying process to accept their bid and to transfer ownership of your domain.
Domain flipping can be a very lucrative home based business online if you know which domains to buy and when. Be sure to do your research and discover which niches are popular at the time and which addresses you should be looking to buy in order to increase your odds of making a substantial profit on your investment.